Tariffs in U.S.-China trade war may impact U.S. consumers, says expert

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00:00POTUS Joe Biden has little in common with his political nemesis and rival Donald Trump.

00:06And yet one of Biden's economic policies is the prolongation or retention of America's

00:11tariff policies on certain Chinese products.

00:14A plan of action Kamala Harris could possibly retain should she take over the White House

00:19in late January next year.

00:21VOA's Elizabeth Lee shares how such policy retention could hurt US consumers more in

00:27this report.

00:31This $6 Made in China bike bell could cost $9.60 if additional tariffs proposed by Republican

00:38presidential candidate Donald Trump becomes reality.

00:42We're doing tariffs on other countries.

00:44Other countries are going to finally after 75 years pay us back for all that we've done

00:49for the world.

00:50And the tariff will be substantial in some cases, meaning Chinese made products will

00:55be hit with as much as a 60% tariff under Trump's plan.

01:00He also says he will implement blanket tariffs of up to 20% on all other countries.

01:06Both Trump and the Democratic presidential nominee Kamala Harris say they want to bring

01:11jobs back to the US.

01:13A policy about China should be in making sure the United States of America wins the competition

01:19for the 21st century.

01:20The Biden administration kept most of the import taxes put in place during Trump's presidency.

01:27In May, Biden announced further tariff increases on $18 billion worth of Chinese imports, including

01:34a 100% import tax on Chinese electric vehicles.

01:38The Biden administration says its tariffs are more strategic, aimed at specific industries,

01:44and that Trump's import tax takes on a broader approach that will cost a middle class American

01:50household $4,000 more a year.

01:54Other estimates are in the range of around $2,000.

01:57Trump says consumers won't be impacted.

02:00Who's going to have higher prices is China and all of the countries that have been ripping

02:04us off for years.

02:06But Chinese businesses are not the ones paying the import taxes, explains supply chain expert

02:12Christopher Tang.

02:13During the election years, everyone is promising the moon.

02:17But the truth of the matter is that the import tariffs are paid by the U.S. firms.

02:22So for an imported Chinese made TV purchased at Costco, it's Costco that pays the import

02:28tax.

02:29When companies are facing high import tariffs, there are two buttons to push.

02:36One is pass the high import costs to the consumers.

02:40The other one is squeeze the Chinese factories to lower the price.

02:44Tang says the risk of pushing Chinese companies to lower the price is poor product quality.

02:51Import taxes may mean fewer made in China labels printed, but that doesn't mean that

02:56there are fewer imports coming from China.

02:59They'll just have a label from a different country, says Tang.

03:03China actually shipped a lot of components and parts to Vietnam, to India for final assembly.

03:11Those end products actually is importing into the U.S. as well.

03:16So therefore, the total effect on China, they still actually export more, but they're not

03:22exporting to U.S. directly.

03:24The World Trade Organization finds tariffs disproportionately affect low income households,

03:30which means a $9.60 bike bell may be out of reach for some consumers if a 60% import tax

03:38is slapped on to Chinese made products.

03:41Elizabeth Lee, VOA News, Washington.

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